Since December 19, 2017, MyQL is now called Rocket Mortgage.
Looking for an easy way to make sure your mortgage payment and other bills are paid automatically and on time? Maybe you hate writing a physical check every month and paying the postage.
There is a better way. You can set up electronic checks (eChecks) and benefit from the added convenience and security offered by using an electronic payment method. We’ll go over the benefits of this payment method and then walk you through how to set up these electronic payments. But first, what is an eCheck?
Anatomy of an eCheck transaction
An eCheck is like a regular check, except that the entire transaction is processed through a secure electronic process. How does the process work?
First of all, you provide some basic information about the bank account. We’ll see exactly what’s needed here in a future section. This information is encrypted when stored for security purposes.
After that, you have several options, including choosing exactly when the money is due out of your account. This element of control is an advantage over physical checks, which merchants can cash as soon as they receive them. You can also choose whether it is a one-time or recurring payment.
When it’s time to process the transaction, funds are debited directly from your bank account and sent to the merchant’s or service provider’s Automated Clearing House (ACH) account. These are special accounts set up for the secure processing of electronic payments.
What are the advantages?
There are several advantages of digital payment processing instead of physical checks. We’ll cover the main ones below.
When you write a physical check, you trust the person you’re giving it to with a ton of information. Your bank account and routing number are shown on the check. There is also a copy of your personal signature.
Although you provide your bank account and routing number in an eCheck transaction, the information is encrypted and stored securely away from prying eyes. Instead of a physical signature, you can instead check a box allowing payment to be made on the day you designate.
To save money
Banks often charge you when you order physical check books. In addition to these fees, you may need to pay for postage and envelopes on occasion. While these costs may seem small, they can add up over time.
In contrast, many service providers, including Quicken Loans, offer the option of making electronic payment by check or ACH free of charge. You don’t even have to go to the mailbox.
Relying less on paper could literally help you breathe easier every day. One tree produces enough oxygen for two people survive for a year. However, if we start cutting down these trees too quickly, it can make a difference in the amount of breathable air we have.
I’m not saying you have to go and kiss a tree, but it’s something to think about the next time you take a deep breath.
Make your mortgage payment electronically
You can use electronic checks to pay for a wide variety of things in today’s online world. We thought we would discuss how Quicken Loans customers can set up electronic payments on their own.
To start, log into your MyQL account on the web or in the MyQL Mobile application. Go to the payment center. Once there, you will be able to enter basic information including your bank account and routing number.
You can make a one-time payment or set up automatic payments. If you choose automatic drafting of payments, you will be able to select a date for a monthly payment (any day between the first and the 16the of the month) or bi-weekly (1st-14e) Payment. Bi-weekly payments are then made every two weeks, which means you’ll save on interest by helping pay off your principal balance faster since you’ll earn the equivalent of one additional full payment per year. The first half of the biweekly payment is placed in a non-interest bearing suspense account which functions as an escrow account. Once we have full payment it is applied to your loan.
After filling out all the fields, go ahead and submit payment. It is so easy. Do you have questions about electronic payments? Leave them to us in the comments below.
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